Fiduciary Duty in the 21st Century – Investor Duties and ESG Integration in China

Published March 2018

In March 2018, The United Nations Environment Finance Initiative (UNEP FI), the Principles for Responsible Investment (PRI), The Generation Foundation, and the International Institute of Green Finance (IIGF) released Investor Duties and ESG Integration in China.

Building on the recent achievements of the national Green Finance initiative in China, the report discusses the development of an investment and regulatory environment that promotes consideration of financially material environmental, social and governance (ESG) issues, consistent with investor obligations and duties. The report considers how responsible investment regulations can contribute to achieving China’s long-term vision of balanced, inclusive and sustainable development.

The report makes recommendations in five areas – policy guidance, pension regulatory guidance, corporate disclosure, standardised labels, and investor education. The central recommendation of the report is that investors should integrate ESG issues in their investment decision-making processes as part of fulfilling their duties towards their beneficiaries and to support the development of China’s Ecological Civilisation. Investor duties should reflect and align with the Chinese government’s Guidelines for Establishing a Green Financial System (GEGFS).

Download the full report in English and Chinese 中文.

Find more information on Fiduciary Duty here.